Major Crypto Heist: Millions Stolen from Velocore DEX Shakes the Cryptocurrency World

Velocore DEX Hacked: Millions in User Assets Lost.

A recent hacking event has sent shockwaves through the cryptocurrency community, with millions of dollars in user assets stolen from a decentralized exchange (DEX). Here’s a detailed look at the incident, its implications, and the response from the involved parties.

Velocore DEX Hacked: Millions in User Assets Lost

Velocore, a decentralized exchange operating on zkSync and Linea, has reportedly been hacked, resulting in the theft of an estimated $10 million worth of user Liquidity Provider (LP) tokens. This significant breach has raised alarms within the crypto community, highlighting the vulnerabilities that still exist within decentralized finance (DeFi) platforms.

Incident Details: How the Hack Unfolded

The Linea blockchain, which temporarily halted block production during the hack, resumed operations after approximately an hour-long outage. This halt, occurring between blocks 5081800 and 5081801, added to the complexity and uncertainty surrounding the incident. The precise cause of the outage remains unknown, but it is suspected to be related to the hack.

Hackers reportedly transferred a portion of the stolen Ethereum (ETH) to the Ethereum mainnet, making it more challenging to trace and recover the funds. This cross-chain transfer indicates a sophisticated and well-planned attack strategy.

Velocore's Response and Security Measures

Despite the breach, Velocore maintains that it had undergone extensive security audits. The exchange had passed three rounds of inspections conducted by reputable firms, including Zokyo, Hacken, and Scalebit. These audits were intended to ensure the platform's security, yet the hack underscores that even audited systems can be vulnerable.

BladeSwap’s Assurance: User Funds Are Safe

BladeSwap, another DEX and a fork of Velocore, issued a statement in response to the hack. The exchange clarified that Velocore's breach was related to its Fixed Product Market Maker (CPMM) pool contract calculation. BladeSwap reassured its users that their funds were safe, emphasizing that it does not use CPMM (Balancer style) pooling.

Broader Implications for the Crypto World

This hacking event highlights the ongoing risks within the DeFi sector. While decentralized exchanges offer many advantages, including improved security compared to centralized exchanges, they are not immune to sophisticated attacks. The incident serves as a reminder of the importance of continuous security improvements and the need for robust, real-time monitoring systems.

Conclusion

The Velocore hack is a stark reminder of the vulnerabilities that persist in the rapidly evolving DeFi landscape. As the cryptocurrency world continues to grow, ensuring the security of decentralized platforms will be crucial to maintaining user trust and preventing future breaches. Investors and users must remain vigilant, and exchanges must prioritize security to safeguard against such high-profile attacks. 

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